October 9, 2020

Why now is the perfect time to invest in the Jewellery Quarter

Long-term forecast for the Jewellery Quarter, Birmingham

If you are looking to invest in something with long-term financial rewards, then the Birmingham Jewellery Quarter buy-to-let market could be for you. Jewellery Quarter property values are 177% higher than 20 years ago, and Birmingham is leading the country in price growth post-2016 at 16% and continuing to forecast above-average house price growth. The demand to live in the jewellery quarter has grown year on and year and it’s clear this is set to continue.

The buy-to-let market in Birmingham’s Jewellery Quarter has remained exceptionally resilient considering the unprecedented conditions 2020 has brought, thus indicating that now is actually a great time to enter the Jewellery Quarter property market. Figures would suggest that investors are returning to the brick and mortar approach to investing; assets such as gold, stocks and shares are fine, but if they aren’t producing any constant income, they aren’t paying for day-to-day living. At the moment many FTSE companies won’t be paying dividends for a while, government bonds are currently earning their investors a negligible 0.2% and the best savings accounts are achieving 1.1% with a 120-day notice period. This is why many people are turning to property. Traditional cold hard assets.

Rightmove reported tenant demand grew by a third in May 2020 when compared to the same month in 2019

Seeped in history, the Jewellery quarter’s industrial roots are still very apparent. An eclectic mix of old versus new, characterful workshops sit alongside independent designer boutiques and unique handmade goods. This inimitable clash of past and present brings a much-needed vibrancy to the new generation of young professionals that are now calling it home.

Aged mainly within the 21-30 bracket, many of these will not yet be homeowners, more– keen to rent luxury apartments in the heart of Birmingham, close to the business district. With little evidence of this changing soon, the investment case remains as credibly strong as ever, with an average price growth of 28% reported over the last three years in the area.

The average Birmingham Jewellery Quarter buy-to-let property will earn a monthly return of 4.95%

Buy to let investment is not simply a case of going with your gut– it requires thorough research, and if you choose the right property you could see profitable returns. Many of the UK’s employees are lingering in financial uncertainty, either due to redundancies or working hours being cut. It doesn’t take a genius to recognise that mortgages are already becoming less attainable, thus creating a very buoyant rental demand. So, once you’re sure you’re working with professionals with a proven track record, now may well be the perfect time to get yourself a great buy-to-let deal.